Tempus AI (TEM) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 22% year-over-year to $382.5 million, driven by strong growth in Diagnostics and Data & Applications, with Oncology volume up 31% and major new data/modeling deals totaling $200 million in bookings.

• Net income reached $5.6 million, a turnaround from a net loss of $42.8 million in Q2 2025, and Adjusted EBITDA improved to $8.0 million, up 244% year-over-year.

• Announced acquisition of Personalis for $1.5–$1.7 billion, expected to close late 2026 or early 2027, to expand MRD capabilities and oncology diagnostics portfolio.

• Delivered first oncology foundation model to AstraZeneca and signed major partnerships with BioNTech, AstraZeneca, Bristol Myers Squibb, and others.

• Ended Q2 with $820.7 million in cash, cash equivalents, and marketable securities.

Financial highlights

• Diagnostics revenue was $289.3 million (+20% YoY); Data & Applications revenue was $93.2 million (+28% YoY); gross profit increased 26% to $246.5 million with gross margin at 64.4%.

• GAAP net income was $5.6 million; Adjusted EBITDA was $8.0 million, a $13.6 million year-over-year improvement.

• Non-GAAP loss from operations narrowed to $(2.7) million from $(17.0) million YoY; non-GAAP net loss per share improved to $(0.04) from $(0.22).

• Cash, equivalents, and marketable securities totaled $820.7 million at quarter-end.

• Interest expense decreased 52% year-over-year due to debt repayments; $460 million convertible senior notes offering completed.

Outlook and guidance

• 2026 revenue guidance raised to $1.595–$1.605 billion, representing ~25% growth; Q3 2026 revenue guidance of $405–$410 million.

• 2026 Adjusted EBITDA expected at ~$65 million, with ongoing quarter-over-quarter improvement and positive cash flow by year-end.

• Continued improvement in Adjusted EBITDA and free cash flow anticipated in 2027, even with Personalis acquisition.

• Long-term data business growth targeted at 30%+ annually.

• Sufficient liquidity projected for at least the next twelve months; additional capital may be raised for strategic opportunities.